Comparison of Malaysia manufacturing companies by financial statement analysis tools

Afagh Malek, Maryam Mohammadi, Fardokht Nasiri

Research output: Contribution to journalArticleScientificpeer-review

Abstract

One of the best ways to get the expected results from trading in the stock market is acquiring good evaluation of companies’ performance. Similarly, this study aims at comparing the financial performance of Lb Aluminium Berhad and Seal Incorporated Berhad manufacturing companies, which are listed in the main market of Malaysian stock exchange. The data were gathered from the annual reports of companies during last three years and analysed by financial statement analysis tools, which are financial ratio analysis and comparative financial statement analysis. The results of the study show that both companies had enough attractiveness for share traders, but the Lb Aluminium was more preferred by management and investors, while the Seal Incorporated Berhad was performing better from competitors and creditors' points of view. The findings of the study will help companies to judge their present condition and take decisions about their future steps while taking into consideration financial issues. In order to get a broader view and generalized idea about the financial issues of companies, the nature of business and industry average should be taken into account. A survey based study is suggested to clarify whether market test or profitability ratios have more significant relationship with companies’ performance from share traders’ view point.
Original languageEnglish
Pages (from-to)89-94
Number of pages6
JournalAcademica Science Journal. Economica Series
Volume1
Issue number1
Publication statusPublished - 2012
MoE publication typeA1 Journal article-refereed

Keywords

  • financial statement analysis
  • stock market
  • industrial products

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